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The CRTC introduced new policies to prepare the Canadian broadcasting industry for the digital transition. The majority of the changes will come into effect on August 31, 2011, the same date that analog signals get shut off in our country.
One of the key decisions is that there would be no new fee-for-carriage of broadcast signals in Canada. A new levy, however, will be imposed to increase local programming.
There will be a new public proceeding examining targeted advertising, where broadcast distribution undertakings (BDUs) may be allowed to insert ads into the two minutes per hour of local avails on U.S. cable channels. These ads may be allowed to target demographics identified by BDU technology.
The CRTC wants to allow video-on-demand advertising, as long as the time is sold by Canadian broadcasters. These ads could also be used for targeted advertising.
Here is breakdown of what the CRTC decided:
Cable & Satellite Companies (BDUs)
- "exempt from its licensing requirements broadcasting distribution companies with fewer than 20,000 subscribers
- harmonize as much as possible the rules between satellite and terrestrial distribution companies
- eliminate most rules governing how channels are packaged (this will provide a wider selection of conventional and specialty channels for consumers, as long as the entire package contains at least 51% Canadian content)
- modify its approach to dispute resolution for complaints that involve allegations of undue preference or undue disadvantage
- require broadcasting distribution companies to continue offering a basic service package after the transition to digital, and
- initiate proceedings to explore how new forms of digital and interactive advertising could benefit the broadcasting system as a whole."
Pay & Specialty Services
- "allow direct competition between Canadian services in mainstream sports and national news (this will allow for a third national news or sports broadcaster to compete with CBC Newsworld and CTV Newsnet, and TSN and Sportsnet)
- maintain exclusivity across other genres while allowing for greater flexibility in the types of programming pay and specialty services may broadcast
- introduce a mechanism to introduce competition in other genres in the future, and
- maintain access rights for Canadian pay and specialty services in a digital environment."
Conventional TV Broadcasters
- "deny the request for a subscriber fee for the carriage of local conventional television stations, and
- allow conventional broadcasters to negotiate payments for the retransmission of their signals to other provinces (known as distant signals)." (This could provide anywhere from $70 million to $90 million in additional revenues)
Local Programming
The CRTC will support local programming by increasing the contribution BDUs must make to Canadian programming from 5% to 6%. This increase will amount to around $60 million and will be put into a new Local Programming Improvement Fund. The increased contribution accounts to a monthly average of $0.50 per subscriber.
The CRTC will support local programming by increasing the contribution BDUs must make to Canadian programming from 5% to 6%. This increase will amount to around $60 million and will be put into a new . The increased contribution accounts to a monthly average of $0.50 per subscriber.
Sources: CRTC, 10/30/2008, Cartt, 10/30/2008, Marketing Magazine, 10/31/2008
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